Life Insurance can seem like an intimidating phrase to some. Selecting insurance is about making sure those who depend on you will be cared for when you are no longer around. If you’ve never purchased life insurance before, there is a good chance you have a lot of questions concerning why you need it, and which type is best. Here at Arlington Greene, we’ve come up with five reasons to consider Term Life Insurance for you and your family.
Why Life Insurance in the First Place?
As you get started, it can be helpful to revisit the reasons why you are buying a policy in the first place. First, you should know what you want your coverage to do. Is your insurance to replace income? What about finally paying off that mortgage? Do you value preparing an inheritance for your family? It could be an of these or more, but whatever you decide should be the factor on which you base your insurance plan off of.
Keeping your reason in mind, you must figure out how much protection you need. If it looks like you will need income replacement, you can add up your annual expenses and multiply that by the number of years you have until retirement. If you want to look after your family’s future expenses (such as a wedding, college, and business careers) or other long-term goals, you could calculate the total cost. For either of these, the total number you come up with should give you an idea. We always recommend looking over this with an Arlington Greene Contact to ensure accuracy.
So how much insurance can you afford? That’s the next question to ask. Insurance is a major purchase and should be considered as a part of your overall budget. With some life insurance plans, the premium cost can increase over time, so be sure that you can afford the one you are considering. That leads us into finding the right policy for you. After you’ve built a portfolio of considerations, it’s time to pick your plan. We encourage first-time buyers, or just anyone who is unfamiliar with the jargon of the insurance world, to work with a certified agent. Be sure to choose an experienced professional that can sit with you and walk you through each and every term, and if you don’t know where to start—let us express why the dedicated staff at Arlington Greene can help!
Term Life Insurance According to Arlington Greene
A Term life insurance policy typically is used to replace lost income due to death during working years or used for business needs such as Key Man, Buy Sell, or loan collateral. In other words, it is an insurance plan that covers you for a specific period.
- Cost Effective – Most people who go shopping for insurance are concerned about high premiums, or how much they will be paying in the long run. The biggest benefit of term life insurance is that it is cheaper than whole life insurance. Term policies offer coverage for a predetermined amount of time, and usually offer it at a set rate! Depending on when you want to start the coverage plan, the length of your term life insurance plan can match the financial obligation you are hoping to cover.
- Flexibility – When you purchase life insurance, it’s always reassuring to know that you get to pick the amount of time for your coverage. Typically, plans can go for 10, 20, or 30 years—and if you pass away while the policy is in place, you are covered. For example, new parents might buy a 20-year policy to cover a newborn child until they are financially stable. As needs disappear over time, so might your need for a policy.
- Made for Young Families – Since term life insurance policies are great for specific periods in life, they can generally be less expensive than permanent life insurance. This makes them a great option for young families in search of temporary coverage. Many people like to match the length of their policy with a key milestone, such as paying off a mortgage or college career. Since so much can change as you grow older and develop a family and you want an insurance plan that will adapt to you.
- Straightforward – Term life insurance is simple. It offers an affordable way to safeguard the financial health of a loved one in case anything happens to them. It offers pure insurance. In comparison with other types of life insurance, such as whole or permanent, a good portion of your premium goes towards building a cash value. Term insurance is also just easy to understand. This makes it easy to shop for. All you have to do is pay the premium to be covered!
- Ease of Mind – Ironically most might think that the best-case scenario for life insurance means that you throw your money away. The chance of misfortune striking at such an early age is usually low. But the truth is, that money isn’t a waste at all when you think about the repercussions of an unexpected tragedy. Having life insurance means knowing that your family is protected if you die. Sure, you might hope that you never have to use it, but you will be happy to pay for it knowing that it could make a worst-case scenario easier on your loved ones.
Click here to read our full page on Term Life Insurance Basics.
Let’s Get Started
Okay, so you’ve decided that you want a Term Life Insurance Policy—where do you go next? Well, you don’t have to go through an insurance agent to get a policy. Most websites offer a ‘no medical exam’ quick policy, which is best for someone young and healthy, we do too! However, you may not realize that sometimes you pay more for these instant policies. Plus, if you have health issues, even minor ones, you may get denied.
At Arlington Greene, we have experts in the life insurance field who are ready to help you avoid these hurdles. We offer all the same policies that you would find going directly through a specific insurance company, but we can help you find the right coverage at the best rates by comparing all side-by-side. We are a small family-owned business with the goal to provide the best service to all our clients. No matter which policy you decide to go with, our team can help curate a plan just for you—guiding your family into securing your financial future!